September 23, 2022 Department of Housing and Urban Development Housing Associates, Inc., HUD Project No. 052-HD-0081, respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Lochte & Company, P.A. 11350 McCormick Road Executive Plaza 3, Suite 503 Hunt Valley, MD 21031 Audit Period: July 1, 2021 through June 30, 2022 The findings from the June 30, 2022, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the Schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS ? FINANCIAL STATEMENT AUDIT NONE FINDINGS ? FEDERAL AWARD PROGRAM AUDIT Finding No. 2022-001 ? Section 811 Project, CFDA #14.181 Recommendation: We recommend that the organization continue to correct the deficiencies cited in the HUD report and review and revise procedures related to unit inspections to ensure that unit deficiencies are identified promptly and corrected. Action Taken: We have been working diligently to correct the deficiencies cited and most are now corrected, however, supply chain issues are affecting the speed at which the repairs can be completed. We will continue to inform HUD of our progress and any related challenges. We have terminated the relationship with the property management company under contract during the failed unit inspection in October 2021 and have been inspecting the property units more frequently internally to identify maintenance issues and problems before they become serious. If HUD has any questions regarding this plan, please contact Nico Sanders at 410-545-4429. Sincerely yours, Nico Sanders, Executive Director